(a) The board may bring an action for fines for repeated violations of materially similar provisions of this chapter within five years by three or more pharmacies operating under common ownership or management within a chain community pharmacy, as follows: a third and, or subsequent violation may be punished by an administrative fine not to exceed one hundred thousand dollars ($100,000) per violation.

(b) The board may bring an action against a chain community pharmacy operating under common ownership or management for fines not to exceed one hundred fifty thousand dollars ($150,000) for any violation of this chapter demonstrated to be the result of a written policy or which was expressly encouraged by the common owner or manager.

Terms Used In California Business and Professions Code 4317.5

  • board: means any entity listed in Section 101, the entities referred to in Sections 1000 and 3600, the State Bar, the Department of Real Estate, and any other state agency that issues a license, certificate, or registration authorizing a person to engage in a business or profession. See California Business and Professions Code 31
  • Licensee: means any person authorized by a license, certificate, registration, or other means to engage in a business or profession regulated by this code or referred to in Sections 1000 and 3600. See California Business and Professions Code 23.8
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Subdivision: means a subdivision of the section in which that term occurs, unless some other section is expressly mentioned. See California Business and Professions Code 15

(c) The board shall not bring an action for fines pursuant to subdivision (a) until at least six months have elapsed from the date the board determines that a violation has occurred unless the violation giving rise to the action resulted in actual harm to any consumer or serious potential harm to the public.

(d) In an action brought by the board pursuant to subdivision (a), it shall be a defense for any pharmacy to establish either of the following:

(1) That the violation was contrary to a written policy that was communicated by the common owner or manager to all employees of the pharmacies where the violation occurred.

(2) That, within six months after the violation, the common owner or manager corrected all unlawful policies, communicated the change in policy or policies in writing to all pharmacies under its ownership or management, and provided proof of abatement of the violation to the board, so long as the violation did not result in actual harm to any consumer or serious potential harm to the public.

(e) In determining the amount of the fine sought in an action brought pursuant to this section, the board shall consider relevant mitigating and aggravating factors, including, but not limited to, the good faith of the licensee, the communication of written changes to unlawful policies, the gravity of the violation, the potential harm to patients, whether the violation affects the professional judgment or independence of pharmacists and pharmacy technicians, and the history of previous violations by the common owner or manager.

(f) The authority granted by this section is in addition to the authority of the board to institute any other administrative, civil, or criminal action.

(g) For purposes of this section, “chain community pharmacy” shall have the same meaning as defined in Section 4001.

(h) The fines in subdivisions (a) and (b) shall be imposed in accordance with Section 4314.

(i) In connection with the board’s first Joint Sunset Review Oversight Hearing pursuant to § 9147.7 of the Government Code occurring after this section becomes operative, the board shall provide to the appropriate committees of the Legislature all of the following information:

(1) The number of actions brought pursuant to this section.

(2) The number of actions brought pursuant to this section that did not result in any fines.

(3) The types of violations giving rise to actions brought pursuant to this section.

(Added by Stats. 2021, Ch. 629, Sec. 30. (AB 1533) Effective January 1, 2022.)

  Previous section
Next section  
 Article 19 Contents